Subject:

Re: Please review

From:
"Antonio Perez" aperez@talgo-inc.com
To:
"Hunter Biden" hbiden@rosemontseneca.com
CC:
"Eric D. Schwerin" eschwerin@rosemontseneca.com, "Michael Muldoon" mmuldoon@rosemontseneca.com, "Nora Friend" nfriend@talgo-inc.com
Date:
2010-05-25 18:17
Re: Please review Thank you Hunter,

In editing the e-mail I want to make you aware that we will have a timing problem. Talgo will have a brand new facilitiy in Milwaukee, with new hired personnel, but if we do not get work right away, then we will have to furlough the personnel and shut down the operation at the beginning of 2012. There will be a gap of at least one year with no production at all and we won’t be able to support an operation with no revenues.

We need to explain that companies like Talgo are being discouraged to invest in the USA and create jobs due to the boom and bust rail policy.

Thanks

Antonio Perez
President & CEO
Cell: +1-202-286-0622




From: Hunter Biden <hbiden@rosemontseneca.com>
Date: Tue, 25 May 2010 18:04:22 -0400
To: Antonio Perez <aperez@talgo-inc.com>
Cc: "Eric D. Schwerin" <eschwerin@rosemontseneca.com>, Michael Muldoon <mmuldoon@rosemontseneca.com>
Subject: RE: Please review

Antonio-
We are reviewing and will get back to you with edits tomorrow.  My initial reaction is that you are asking a question that she cannot answer- at least to your satisfaction.  As I said to you last week the Administration and informed members of Congress understand that 100% but American is a completely unrealistic hurdle today.  Nevertheless, they are faced with the politics of perception and must tread lightly when formulating a sensible solution.  This is a process that will not be worked out in public.  I am aware that not having definitive answers to the questions you pose is of little solace to your management and board, but for the time being I am certain Jennifer or anyone on the hill will have to answer- “100% buy American means 100% buy American.” (Particularly if they are asked to respond in a letter that they have no control over the dissemination of.)  All this being said we can edit the letter so that your point is made without asking them to place themselves in a box.
 
In the meantime we are reviewing the most current proposal you sent and will be back to you on that shortly.
 
Best,
Hunter
 

R. Hunter Biden
Rosemont Seneca Partners, LLC
1010 Wisconsin Av., NW
Suite 705
Washington, DC 20007
202-333-1880
P Consider the environment before printing this email.
This message and any attachments (the "message") are confidential and intended solely for the addressees.  Any unauthorized use or dissemination is prohibited.
 

From: Antonio Perez [mailto:aperez@talgo-inc.com]
Sent: Tuesday, May 25, 2010 1:07 AM
To: Hunter Biden
Cc: Nora Friend; Eric D. Schwerin
Subject: Please review
 
Hunter,

Can you please quickly review the e-mail below that I want to send Jennifer Esposito, Staff Director of Congressman Oberstar?



Dear Jennifer,

I left you a voice message last week. The purpose of that voice message and of this e-mail is to get clarification on the correct interpretation of the 100% requirement that both congressman Oberstar and the Administration are constantly referring to in public.

Talgo is the first train manufacturer that has been awarded a contract to manufacture trains using ARRA funds granted through the FTA. That agency requires that 60% of the components (Air conditioning equipment, doors, seats, etc) be manufactured in the USA. In order for a component to qualify as built in the USA it has to meet two tests: (i) that the final assembly takes place in the USA and (ii) that 60% of the components are manufactured in the USA. These guidelines have been used for years by the manufacturers of trains and by the vendors of components and allows to buy build trains using parts that are not built in the USA, which in many cases cannot be found in the USA.

Now an unclear request of 100% Buy America is required from manufacturers. If the guidelines of the FTA are applicable to the 100% request, then 100% of the components and 100% of the subcomponents should be built in the USA. The vendors we are dealing with tell us that such goal in unattainable because it would, in essence mean, that each bolt, screw, etc. would have to be made in the US.  Everyone understands a lot of components of parts manufactured in the US come from other countries like China etc. .  
 
Talgo takes its commitments very seriously.  Therefore ,  we are seeking clarification on the 100% request to determine if it is worth to stay in a market that has funds available but that will never be used due to the conditions set to grant them.

Since Congressman Oberstar was the author of the ARRA language, we are hoping that the intent of the language will be clarified. We a quick response because various states are asking us whether or not we can meet the ARRA requirement  but we don't know what 100% really means as vendors don't even built parts that are 100% American.  
 
Could it mean that if the components are "mostly American" as in 80%, then it is considered to pass the 100% Buy America.
 
Please clarify with Mr. Oberstar.  We did not hear back about Talgo's willingness to establish a "US Training Work Force" either from Mr. Oberstar.
 
I look forward to hearing from you or speaking with Mr. Oberstar on the phone again as soon as possible for him.

Thank you

Antonio Perez
President & CEO
Cell: +1-202-286-0622

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